Lead Data, Taiwan’s fifth-largest CD-R disc marker, is diversifying as technology royalty payments and anti-dumping tariffs by the European Union (EU) on Taiwan disc exports continue to erode its profit base.

The company has invested in three motherboard makers in China and recently started board production serving LG Electronics, Royal Philips Electronics and Umax Data Systems of Taiwan. Shipment figures were not available.

Gains from Lead Data’s motherboard affiliates were expected to contribute to 20-25% of its net profits this year, but the company now concedes that meeting the target is unlikely. Lead Data said it would post another loss for the second quarter after a first-quarter net loss of NT$20 million.